Kazakhmys Needs More Than Powering Down

Outlook for Core Mining Operations Remains Bleak

Every silver lining has a cloud. Kazakhmys has sold its 50% remaining stake in Kazakhstan's largest power station for $1.25 billion. The price looks decent and the cash will enable the London-listed miner to pay down debt facilities on which Kazakhmys risks breaching its covenants.

But the reason for the copper miner's mounting debt pile cast a shadow: Kazakhmys is bringing in another contractor to keep its flagship expansion project...